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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM66996
Volume:
10 |
8 |
Aug 2026
Pages:
1-7
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Department of Management Studies
Vels Institute of Science, Technology & Advanced Studies
Department of Management Studies
Vels Institute of Science, Technology & Advanced Studies
This study focused on credit management and loan performance analysis of an urban co-operative credit society. The study examined the credit management audit which includes credit appraisal, borrower’s repayment capacity assessment, loan sanction, loan follow up and recovery mechanism. The study further evaluated the relationship between credit management and loan performance using descriptive and diagnostic analysis. The study relied on both qualitative and quantitative data. Questionnaires were administered to members and borrowers from whom the primary data were collected. The secondary data were obtained from the annual reports, audit reports, financial statements, loan registers, and other relevant published materials. The study employed percentage analysis, weighted mean, correlation, regression analysis, and Chi-Square test to arrive at its conclusions. The study found that effective credit appraisal, borrower’s repayment assessment, and loan follow up and recovery measures have a significant relationship with loan performance. The study recommended that there is a need to develop effective strategies for loan sanction, follow up and recovery, enhance awareness on repayment, and strengthening monitoring and evaluation to ensure that loans are maintained at satisfactory levels and to increase repayment rate. The study concluded that effective credit management has a positive relationship with loan performance, repayment rate and financial sustainability of the co-operative credit society.
KEYWORDS
The study established that proper credit management is key to achieving good loan performance and financial stability. Proper appraisal and assessment of credit proposals together with timely sanction of approved loans, diligent monitoring and effective recovery strategies can significantly improve credit risk management and address the problem of defaulted loans. The study further reveals that enhancing repayment awareness, efficient customer services and loan monitoring can improve recovery performance. It is therefore evident that prudent credit management practice leads to good loan performance, improved recovery strategies, less credit risk and ultimately sustainable co-operative credit institutions.
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Publication Date
8/30/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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No funding information available for this research.
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